Value Investing Credit Suisse loses $4.7 Billion on Prime Broker Related Liquidations |
- Credit Suisse loses $4.7 Billion on Prime Broker Related Liquidations
- Interview with Ruth Porat, Executive Vice President and Chief Financial Officer, Morgan Stanley (2014)
- CVEO - 24% FCF Yield and getting better each quarter
- Deep Dive on Northrop Grumman (NOC)
- Why Waymo Leads the Race for Autonomous Cars
- Long idea: Hello Kitty-owner Sanrio
- “A Lesson on Elementary Worldly Wisdom As It Relates To Investment Management and Business” by Charles Munger
- Long idea: China Unicom
- $WLFC; Experience with Unfair Take-Private Offers?
| Credit Suisse loses $4.7 Billion on Prime Broker Related Liquidations Posted: 06 Apr 2021 08:55 AM PDT |
| Posted: 07 Apr 2021 12:35 AM PDT |
| CVEO - 24% FCF Yield and getting better each quarter Posted: 06 Apr 2021 06:26 PM PDT https://charioteerinvesting.com/civeo-cveo-an-exercise-in-simplicity/ CVEO is a beaten up stock in a beaten up industry. It trades at a 24% FCF yield, and is paying off debt rapidly. Any improvement in the end market will result in large incremental margin improvement, and the constant deleveraging is improving the risk profile of the equity. [link] [comments]  |
| Deep Dive on Northrop Grumman (NOC) Posted: 05 Apr 2021 08:14 AM PDT |
| Why Waymo Leads the Race for Autonomous Cars Posted: 04 Apr 2021 09:20 PM PDT |
| Long idea: Hello Kitty-owner Sanrio Posted: 05 Apr 2021 06:29 AM PDT Japan-based designer, licensor and producer of consumer products, including brand names such as Hello Kitty and Gudatama. Hello Kitty is ranked as the #2 highest-grossing media franchise of all time globally, ahead of Mickey Mouse, Star Wars, Super Mario and Winnie the Pooh. Yet the stock is languishing at relatively low levels after the founder's son Kunihiko Tsuji passed away in 2014. The company has three separate segments that reinforce each other: self-produced consumer goods, licensing and theme parks. New characters are developed and tested in the theme park segments and sold through the self-owned stores, and finally licensed out to third parties if they are successful. We believe that Sanrio represents an asset that hasn't yet been fully monetised. The grandson Tomokuni Tusji started taking over day-to-day management of Sanrio from 2019 onwards. His turnaround plan includes the following: setting up an overall marketing department, new digital initiatives such as the Sanrio+ app, a new animation and gaming business with a new Hello Kitty movie coming out. Also new collaborations with Levi's, Razer, Uniqlo, Balenciaga etc. Alt-data suggests that the business is picking up momentum. Google Trends data, Subreddit statistics and Instagram likes are all rebounding sharply in the key US and European markets. While the theme park and the directly owned stores have suffered from COVID-19, Japan is now in a full vaccination drive that is likely to normalise day-to-day life by the end of 2021. Difficult to value Sanrio, but if the turnaround momentum continues at this pace, it is not difficult to envisage significant upside. Full report in the link below: http://www.asiancenturystocks.com/2021-5-sanrio-company-ltd/ [link] [comments]  |
| Posted: 04 Apr 2021 01:56 PM PDT |
| Posted: 05 Apr 2021 06:38 AM PDT China's third-largest telecom operator has been sold down significantly on 5G capex fears, COVID-19, and US sanctions on investor ownership of the shares. At 0.33x EV/Sales, it is now among the most inexpensive of any telecom operator globally. While the telecom business is competitive, revenue is recurring and the regulator has in the past been relatively hands-off. It is an SOE, and the government is reliant on the dividends paid by its state-owned companies. That makes us confident that they will continue to earn a satisfactory margin. While the operating margin was only 3.7% in 2020, we think there is significant upside to this number. First, China Unicom has now entered into a partnership with China Telecom to share all 5G capex and base station running costs, thus significantly lowering each company's expense burden from this generation onwards. Second, the capex has been front-loaded and the number of 5G subscriptions is only now starting to accelerate the company's blended ARPU growth. Third, we are most likely in the later stages of COVID-19 with life in China more or less back to normal, meaning individuals will spend less time on household WiFi and instead use wireless data to a higher extent than during the pandemic. Assuming the operating margin comes back to a level of 5.4%, we foresee an upside of +64% to a 10x EV/EBIT, which is where the stock has traded in the past. Link to the full report below: http://www.asiancenturystocks.com/2021-6-china-unicom-hong-kong-limited/ [link] [comments]  |
| $WLFC; Experience with Unfair Take-Private Offers? Posted: 04 Apr 2021 11:59 AM PDT I wrote a DD on a company which can be found here: https://www.reddit.com/r/ValueInvesting/comments/lt4p75/wlfc_a_true_value_opportunity_in_the_airline/ I won't go into huge detail as you can find what you need there. Basically, my hypothesis was proven true and the company tendered a take-private offer, but here's the thing: the offer is bullshit. They offered cash considerations of $42/share while the intrinsic value of the company is far, far higher. In fact, on February 10, 2020, when the company's intrinsic value was largely the same, they had worked themselves up (since mid-2019) to offer $62.50/share. WTF? This is like a 48% premium. Here is the SEC filing with them offering $62.50/share just over a year ago: https://www.sec.gov/Archives/edgar/data/1018164/000110465920013072/a20-7229_1sc13da.htm Here is the current BS SEC filing: https://www.sec.gov/ix?doc=/Archives/edgar/data/1018164/000101816421000019/wlfc-20210319.htm So, we have a company who's intrinsic value has largely unchanged but we are getting massive differences in offers. Management has wanted to take this company private for like a decade (I found an interview from 2008 where the CEO laments about how much he hates being a public company) so I know they are motivated to take it private. What are your guys' experience with situations like this? Does management always lowball, the committee responsibly counters, and they work their way up the price ladder until finally shareholders accept? Or, is there a very real possibility shareholders will get fucked here and they will get away with murder? I am currently assessing the risk of my position. Barring another crisis which decimates the airline industry, the downside is the floor offer of $42/share they have offered, but the ceiling is around $62/share. I just want to know your guys' experience with situations like this and whether or not it's likely shareholders will get a fairer offer or not. [link] [comments]  |
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